In The Know
27 March 2019
Click the headings below to read more or visit the Property Management page
Bon Voyage Jim
Jim Davis has decided to travel overseas after serving on the REINZ Board for more than four years, representing Region Four. We wish Jim all the best on his travels.
Bridget Coates, REINZ Chair says: “Jim has made a significant contribution to the Institute during his time on the REINZ Board. We are grateful for all his knowledge, insight and the value he has brought to the industry during the last four years.”
Shane O'Brien has been elected as the new Region Four Director, effective 27 April.
Shane has worked in the real estate industry for more than 25 years with experience as a salesperson, Manager, Director and Shareholder. He has been involved in all aspects of real estate including campaign management, marketing, auctioneering, management and governance, therefore bringing a broad range of knowledge to the REINZ Board.
Forging signatures and destroying documents
This case involved a real estate agent whose family home was subject to a mortgagee sale.
On 21 December 2007, Ms. M, the real estate agent in question, sold her family home in Parnell to her son and another man with the assistance of a company that provided mortgage finance.
Ms. M was responsible for making mortgage payments and in November 2012, she failed to make the necessary payments.
On 26 February 2013, a Notice of Default was issued by the financier, specifying the amount required being $13,995.25 and an additional $950.00 which was due by 5 April 2013.
Ms. M was unable to make adequate payment and the company organised for the property to be sold by auction on 17 July 2013.
Ms. M’s sole purpose was to ensure that the property was not sold via mortgagee sale. On 1 July 2013, she consulted a mortgage broker who put her into contact with a second-tier lender, who then introduced her to a funder Mr. P.
Mr. P decided to assist Ms. M with her plan and agreed to pay the $25,000 deposit at the auction which would then give Ms. M more time to secure the rest of the payment. Mr. P specified that he would need to be named on the Sale of Real Estate by Auction contract (“contract”) as a nominee however, the intention was that Ms. M’s three children would eventually acquire the property.
Ms. M then engaged her colleague Ms. G who agreed to bid on Ms. M’s behalf. Ms. M informed the Real Estate Agents Disciplinary Tribunal that she had informed both the auctioneer and the previous mortgage financier that Ms. G was bidding on her behalf. The Tribunal found that Ms. M had not informed her previous mortgage financier nor did the auctioneer declare this prior to bidding commencing.
Passed In
The house did not sell at auction and Ms. M and Mr. P instructed Ms. G to sign a memorandum of contract to buy the property for $435,000. The terms of the contract included a reduced deposit, extended settlement period however, Mr. P was not named as a nominee. Mr. P’s name was eventually added as nominee and Ms. M subsequently sent the contract to Mr. P which resulted in Mr. P paying the deposit on 19 July 2013.
Disclosure
Ms. M had been struggling to finance the remainder of the purchase and participated in two dishonest schemes to improve her prospects of raising funds. She had forged a contract dated 2 August 2013 by forging Ms. G’s signature and another contract dated 9 August 2013, which misrepresented the purchase price and the deposit paid. In relation to these contracts, Ms. M had used a contract under the branding of the agency that she was working for at the time.
The agency’s Regional Manager had told Ms. M that she should not have used the contract under the agency’s branding which then provoked Ms. M to destroy one of the original signed 2 August 2013 contracts. Essentially, she had altered and destroyed documents in relation to the sale. Despite Mr. P paying the deposit, Ms. M was unable to arrange finance to enable the property to settle.
Finding
The Tribunal found that Ms. M had engaged in conduct that would reasonably be regarded by agents of good standing, or reasonable members of the public, as disgraceful (misconduct).
You can find the decision here.
Misleading advertising costly for licensees and agency
On 29 March 2018, the Real Estate Agents Authority received a complaint made against a salesperson, Ms K and her supervising agent, Mr B in relation to a purchase of a property. The Complaints Assessment Committee (CAC) also considered that the complaint raised certain issues about the Agency in respect of supervision.
The complaint related to the advertising of the property by Ms K which stated that the property was H5 treated timber, the stud height in the open plan living and dining areas was 3.2 metres and that there was room for a pool in the grounds.
The complainants viewed the property in March 2014 and were aware that the property had not sold via auction. Ms K had explained to them that the property may not have sold because of its “solid plaster” type construction. Ms K reassured the complainants that the house was in good condition.
One of the main requirements for the complainants was a swimming pool and Ms K represented that there was room for a pool.
Prior to purchasing the house, the complainants had a non-invasive building inspection which confirmed that the house was in generally good condition but did not confirm the level of timber treatment, stud height or whether a pool could be fitted.
After settling in to the property, the complainants contacted the City Council in respect of the swimming pool and were advised that the non-covered area of the property was not big enough to include a pool and that they would need to apply for resource consent with no guarantee of it being approved. Their neighbours also stated that they would not be happy if a pool was installed. The complainants therefore chose to purchase a spa which did not require consent.
In 2017, the complainants decided to sell the property through a franchisee and during an open home period, a prospective purchaser performed due diligence by contacting a construction company and timber yard that had supplied the timber for the property. It was then discovered that the house had no treatment except to the valley and hip timbers which were treated to level H3. The complainants were looking for an offer of around $4-$4.2 million and the prospective purchasers offered $3.2 million which was not accepted.
The franchisee decided that it could not go ahead with an auction as the advertising had been misleading and untrue. The information on the property was then checked and it was discovered that the stud height was in fact 2.9 metres at ground floor and 2.7 metres at the first floor.
The complainants therefore made a complaint against Ms K and Mr B as they most likely would not have even made an offer on the property, had they known the timber was untreated.
Timber
Ms K acknowledged that the marketing material was incorrect in relation to the H5 timber however, she considered it to be reasonable for her to rely on the vendors advice.
The CAC stated that it was not reasonable for her to rely on the vendor’s advice and that she should have had it independently verified or caveated it as not being verified. The CAC found that she breached Rule 5.1 of the Professional Conduct and Client Care Rules 2012 in that she failed to exercise skill, care, competence and diligence and she also misled the complainants under Rule 6.4.
Stud height
The CAC found that she had misinterpreted the plans in relation to the stud height and did not caveat any advice given after this and as a result, misrepresented the stud height. The CAC found her to have breached Rule 5.1 and Rule 6.4.
Pool
The CAC found that Ms K had not recommended that the complainants obtain specialist advice or check with the council regarding the pool. They also found that she had failed to seek advice prior to advertising the property as “room for a pool”. She was found to have breached Rule 5.1 and Rule 6.4.
Supervision
Mr B had delegated his supervision and management, and this did not constitute as proper supervision. The CAC however did find that Mr B did respond appropriately to the complaint. The Agency was found to have failed to ensure that all its salespeople were properly supervised and managed by a branch manager or agent at relevant times. This breached Rule 8.3.
Finding
The CAC found that Ms K, Mr B and the Agency engaged in unsatisfactory conduct. Ms K was fined $6,000, Mr B was fined $4,000 and the Agency was fined $10,000.
You can find the decision here.
Verifiable Training
Auckland Verifiable Training - LAST CHANCE!
Wednesday 3 & Thursday 4 April
Registration deadline Monday 1 April - a $50 per person late fee will apply after this date.
Dunedin Verifiable Training
Wednesday 10 & Thursday 11 April
Registration deadline Thursday 4 April - a $50 per person late fee will apply after this date.
Wellington Verifiable Training
Wednesday 10 & Thursday 11 April
Registration deadline Thursday 4 April - a $50 per person late fee will apply after this date.
Christchurch Workshop - Defective EQC repairs - LAST CHANCE!
Wednesday 3 April
Issues, red flags, and protecting yourself.
REINZ Rural & Lifestyle Roadshow
5 locations between 30 April - 15 May
REINZ has organised a 2-hour workshop for our rural & lifestyle sector, presented by John Abbott.
This session will cover getting your head right; prospecting; winning the pitch; presenting compelling information; increase marketing/campaigning; managing clients and closing sales.
Sessions are available in Hamilton, Invercargill, Christchurch, Cromwell and Kerikeri.
Book Now
REINZ presents the Anti-Money Laundering Roadshow - Part 2!
Practical, hands-on and detailed training. Check out the poster
Find your suitable session and book now.
Last chance to book for Tauranga, Rotorua and Invercargill.
C&I Workshop: Advanced Negotiation Strategies to clinch that deal
Wednesday 1 May
Staying ahead in C&I real estate is tough. You need advanced negotiation skills and strategies to get ahead in challenging market conditions.
Presented by John Abbott, this workshop aims to hone your skills so you can get ahead of the pack and clinch that deal
Book Now
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| April | |||
| Auckland 1 | 3 - 4 | Events on Khyber | Book Now |
| Wellington/Lower Hutt | 10 - 11 | Lower Hutt Events Centre | Book Now |
| Dunedin | 10 - 11 | Edgar Centre | Book Now |
| May | |||
| Thames | 1 - 2 | Thames Civic Centre | Book Now |
| Whangarei | 8 - 9 | Northland Events Centre | Book Now |
| New Plymouth | 15 - 16 | Novotel | Book Now |
| Hamilton | 29 - 30 | Workingmen's Club | Book Now |
Sector Events
Commercial & Industrial Breakfast
Wednesday 10 April, 7.30am - 10am
REINZ is excited to have Rod Marler (Panuku Development Auckland), Stephen Selwood (Infrastructure New Zealand), Chris Cunniffe (Tax Management New Zealand) and Lisa Gerrard (REINZ) speaking with us for our 2019 Commercial and Industrial Breakfast held at the Maritime Room, Auckland.
Sports Tournaments
Auckland Golf Tournament
Thursday 16 May, 10:30am - 5:30pm
Entry includes green fees, prize table, first drink and after match platters. Thank you to our sponsors Property Press, Mercedes-Benz and Barfoot & Thompson. This event is open to REINZ Members, partners and clients. Registrations close on Friday 9th May (unless sold prior).
Registration will be open on the day from 10:30am. Prizes will be awarded for Stableford Competition and Men's & Ladies Gross.
For more information, please contact Events@reinz.co.nz
Inspire | Motivate | Connect - 2019 YPIRE Conference
For young professionals in real estate, those new to the industry, the young at heart or anyone interested in the amazing speaker lineup.
With a great lineup of speakers including Phil Harris, Tom Panos, Jake Millar and Lisa King, the 2019 YPIRE Conference is one you do not want to miss!
Grab your earlybird tickets before 5 May for the best pricing!
For all REINZ Events, visit the Education Portal.
| April | |||
| Commercial & Industrial Breakfast | 10 April | 7.30am - 10am | Maritime Room, Auckland |
| May | |||
| Auckland Golf Tournament | 16 May | 10.30am - 5.30am | Akarana Golf Club |
| June | |||
| NZ Auctioneering Championships - Draw | 23 June | 5.30pm - 7.30pm | REINZ, Auckland |
| NZ Auctioneering Championships - Heats | 24 June | 10am - 5pm | REINZ, Auckland |
| NZ Auctioneering Championships - Finals | 25 June | 10am - 6pm | REINZ, Auckland |
| Septmber | |||
| Inspire | Motivate | Connect Conference | 18 September | 10am - 7pm | Shed 10, Auckland |
Face-to-face Training
PropertySmarts Training - FREE
Thursday 11 April, 10am - 11am
Events on Khyber, L2 REINZ Head Office, Auckland
Enhanced Statistics Portal Training - FREE
Thursday 11 April, 11.15am - 12.15pm
Events on Khyber, L2 REINZ Head Office, Auckland
How to use eForms to create a Sale & Purchase agreement and offer - FREE
Friday 12 April, 10am - 11am
Events on Khyber, L2 REINZ Head Office, Auckland
How to use FlexiSign to negotiate offers online - FREE
Thursday 11 April, 10am - 11am
Events on Khyber, L2 REINZ Head Office, Auckland
Grey Lynn drops out of Auckland Top 10
After making its entrance into the Top 10 list of highest sale volume suburbs in 2017, trendy inner-city suburb Grey Lynn has again fallen out of the Top 10 list, according to the latest data from REINZ.
Find the Top 10 suburbs in the full article here.
REINZ works in partnership with NetYourJob recruitment to provide maximum industry coverage when you’re looking for real estate staff. NetYourJob can provide REINZ Members with competitive marketing rates for job advertising. Contact NetYourJob on 0800 638 968 to find out more or click here to view new jobs this week.
